Portugal

Company Formation in Portugal

Portugal is an attractive destination to set-up your company to cater to the large EU Market. YourGlobalPro can assist in Portugal for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval, Trademark Registration and Citizenship Services.

The Portuguese Republic (Portugal) is s a sovereign state located on the Iberian Peninsula in southwestern Europe. It is bordered by the Atlantic Ocean to the west and south and to the east and north by Spain. The republic also includes the Atlantic archipelagos of the Azores and Madeira, both autonomous regions with their own regional governments. The below content will explain you in detail about the requirements for the company formation in Portugal, know more about the process of trademark registration in Portugal and understand the Portugal Legal and Compliance requirements.

Doing Business Introduction

Portugal is a developed and a high-income country, with its GDP per capita in 2014 being 78% of the EU27 average – increasing from 76% in 2012. A booming tourist sector, resilient demand from the Eurozone, a declining unemployment rate and timid gains in wage growth following years of stagnation are driving Portugal’s economic recovery. As per Doing business report of The World Bank –Portugal ranks 25 for 2017 survey in terms of ease in doing business.

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Portugal are as mentioned below:

Private Limited Liability Company (Sociedad por Quotas, LDA)

Public Limited Companies (Sociedade Anonima SA Corporation

Limited Co-partnership Companies (Sociedad em Comandita, SC)

General Partnership Companies (Sociedad em Nome Collectivo, SNC)

Time Frame for Incorporation of Company in Portugal varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimates the time required for the process of Company formation in Portugal to be completed is 4-6 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Portugal:

Operation costs in Portugal are one of the lowest in Western Europe

Portugal population provides a young and vibrant population

Portugal has strategic relations with other countries through its EU membership and ties with other Portuguese speaking markets

Good physical and IT infrastructure

Socio-political stability

Portugal’s government has put efforts towards diversifying and modernizing its markets

Companies resident in Portugal are subject to income tax on their worldwide income while non-resident companies are taxed only on income derived from a permanent establishment in Portugal. Below are some crucial points in relation to taxation rates in Portugal:

For trademark registration in Portugal an application must be filed before the Patent Office (INPI) by a local agent. A non-legalized power of attorney is sufficient. The Trademark Registration in Portugal is valid 10 years from the date of filing trademark and is renewable for similar periods of 10 years. It takes approximately 6-8 months from first filing to registration

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Portugal for your business. For assistance or advise in the matter of the trademark registration or intellectual property – please feel free to write or contact us.

Portugal has implemented the provisions of the Fourth EC Directive, giving rise to the publication of an Official Chart of Accounts in 1989. Financial statements of Financial Institutions as well as the consolidated financial statements of quoted companies are required to adopt accounting practices according to IAS. The Companies must maintain proper books of Accounts for the business transactions.

YourGlobalPro professionals assist you with the entire bookkeeping and accounting services for your Portugal Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

All public limited companies must have their books audited by a statutory auditor. Furthermore, private limited liability companies that exceed two of the three limits during two consecutive years are also required to appoint a registered auditor. Limits are as follows:

Income exceeds 3 million euros

Total net assets exceed 1.5 million euros

Number of employees exceeds 50

YourGlobalPro professionals provide you auditing services as required by your business in Portugal.

Banking

Opening an account in a bank is quite easy in Portugal. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.

The major banks in Portugal are Millennium BCP, Novo Banco, Banco Bilbao e Vizcaya, Banco Portugues de Investimento SA (BPI), Santander Totta and Barclays Bank. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals facilitates all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Portugal.

In Portugal, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Portugal legal and compliance requirement to be followed by incorporated entities:

In a limited partnership, one of the partners must have full liability of the company’s debts.

YourGlobalPro professionals can assist you in Portugal Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Portugal:

Maximum length of single-term contract is 36 and fixed term contracts including renewals is 36 months.

Companies should overtime work is a premium of 31.3% of hourly pay.

Paid annual leaves regardless years in tenure is 22 days.

EU, EEA and Swiss nationals do not need permits to work in Portugal.

An EU, EEA or Swiss national who intends to reside and work in Portugal must register with the local city hall if his or her stay exceeds 90 days

Non-EU nationals must enter Portugal with the proper visas if they intend to carry out professional activities. The type of work permit and visa required and the required procedures to obtain these items differ depending on how the work relationship is classified